Kajaria Ceramics Results in line, momentum strong BUY : Emkay

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Kajaria Ceramics

Results in line, momentum strong

BUY

CMP: Rs 84                                       Target Price: Rs 117

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n     Q4 FY11 results were in line with estimates. Revenues grew by 31% yoy to Rs 2.8 bn while PAT increased 44% yoy to Rs184 mn

n     Revenue growth supported by strong demand from upper end vitrified tiles and higher trading. FY12 margins to improve supported by strong realizations & improved operating leverage

n     Aggressively expanding capacity- Sikandarabad plant conversion, Gailpur capacity expansion completed. Acquired Soriso ceramics, Gujarat based manufacturer 

n     Maintain FY12E estimates. We introduce FY13E estimates and roll over valuations to FY13E basis- target price raised to Rs 117 (previous Rs 100), maintain BUY